A Problem Encountered When Implementing an "Infant Industry" Tariff Is

question 3

Multiple Choice

A problem encountered when implementing an "infant industry" tariff is that

• A) domestic consumers will purchase the foreign good regardless of the tariff.
• B) the industry may never "mature."
• C) most industries require tariff protection when they are mature.
• D) the tariff may hurt the industry's domestic sales.
• E) the tariffs fail to protect the domestic producers.

---

Definitions:

Tax

Mandatory charges imposed by governments on individuals or entities to fund public services and goods.

Deadweight Loss

An economic inefficiency resulting from a market not reaching equilibrium, where potential gains from trade are not fully realized.

Demand

It represents the quantity of a good or service that consumers are willing and able to purchase at various prices.

Supply

The total amount of a product or service that is available to consumers.